Importance

Companies with shorter Order Cycle Times are more responsive to customer orders. Longer lead times may ultimately result in customer dissatisfaction and competitive disadvantage. Order Cycle Time is considered less relevant to Make-to-Stock supply chains, these generally put more emphasis on improving Fill Rates.

Notes

The impact of planning processes on Order Cycle Time is limited; Order Cycle Time is typically measured for MTO and ETO supply chains, where planning is mainly focused on establishing capacity. Planning will have a direct impact on Order Cycle Time if or when capacity is or becomes the primary constraint.

Make-To-Stock (MTS) supply chains typically measure Order Fill Rate, as Order Cycle Time may underemphasize the scale of product shortages.

Order Cycle Time Responsiveness 21000 1 Responsiveness, Order Cycle Time, Cycle-time, Lead-time, Supply Chain The average time required to fulfill customer orders; demonstrating the speed at which the company can satisfy demand